10.
THE COST-ORIENTED ECONOMICS TRAP
Saving on expense may be an upside of tech innovation and investment, but the real goal should be creating value.
—JOHN MCMANUS1
“The numbers give us no choice,” the CFO declares. “It’s obvious that if labor costs in another country are very much lower, it will be cheaper to outsource the work there, even if the workers there are somewhat less productive.” Agile managers in public corporations are often confronted with such declarations. The argument can be even more compelling in software development than manufacturing because in a virtual world, the reasoning goes, geographical location doesn’t matter: Software can be shipped in an instant from wherever it is developed to wherever it is needed. “The numbers ...
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